Job Order and Process Costing Systems †Quiz Essay

inquiry (TCO F) Assume there is no begin operation in fulfill inventory and the ending work in put to work inventory is ampere-second% fatten up with respect to materials be. The form of equivalent social units with respect to materials monetary values under the weighted- average out method isbookman outcomeXX the same as the number of units put into employment. less than the number of units put into intersection. the same as the number of units completed. less than the number of units completed. Instructor ExplanationChapter 4Points Received5 of 5Comments commodious job2.Question (TCO F) handle termsing would be appropriate for each of the following exceptStudent AnswerXX custom furniture manufacturing.oil refining.grain milling.newsprint production.Instructor ExplanationChapter 4Points Received5 of 5CommentsGreat jobQuestion (TCO F) Lucas Company physical exertions the weighted-average method in its make for greeting system. The high society adds materials at t he beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October followsQuestion (TCO F) During December at Ingrim heap, $74,000 of natural materials were requisitioned from the stowing for work in production. These raw materials included both direct and indirect materials. The indirect materials be $6,000. The diary entry to record the requisition from the storeroom would include aStudent Answerdebit to piercing Materials of $74,000.XX debit to Work in Process of $68,000.credit to Manufacturing Overhead of $6,000.debit to Work in Process of $74,000.Instructor ExplanationChapter 3Points Received5 of 5CommentsGreat job6.Question (TCO F) Wedd Corporation had $35,000 of raw materials on hand on May 1. During the month, the company purchased an additional $68,000 of raw materials. During May, $92,000 of raw materials were requisitioned from the storeroom for us e in production. These raw materials included both direct and indirect materials. The indirect materials innateed $5,000. The debits to the Work in Process account as a consequence of the raw materials transactions in May totalStudent Answer$92,000.$0.$68,000.XX $87,000.Instructor ExplanationChapter 3Points Received5 of 5CommentsGreat job1.Question (TCO F) Some companies use process monetary valueing and some use job-order being. Which method a company uses depends on its industry. A number of companies in different industries atomic number 18 listed infrai. Custom boat builderii. Frozen cranberry juice central processing unitiii. Concrete block manufactureriv. wine maker that produces a number of varietal winesv. Aluminum refiner that makes aluminum ingots from bauxite oreFor each company, indicate whether the company is most likely to use job-order costing or process costing.Student AnswerJob order costing is where a company produces different products each period, they are m ade to order, All costs are traced to each job and requires that each job has documentation of all costs associated with it. Process costing is when a company produces a individual(a) product for a long period of time and the product is the same or very similar, the costs are accumulated by department. i. Custom boat builder= Job-order costing ii. Frozen cranberry juice processor= process costing iii. Concrete block manufacturer= process costing iv. Winery that produces a number of varietal wines= Job-order addressing v. Aluminum refiner that makes aluminum ingots from bauxite ore= process costing3. Question (TCO F) Harmon Company uses the weighted-average method in its process costing system. The Curing Department of Harmon Company reported the following information for the month of November.UnitsPercentage complete with respect to conversionWork in process, November 110,00080%Units started28,000Completed and transferred out30,000Work in process, November 308,00030%Costs for Nove mberMaterialsConversionWork in process, November 1$34,500$48,600Added during the month$146,000$194,400All materials are added at the beginning of the process.Required Compute the following items using the weighted-average methodi. The equivalent units of production for materials.ii. The cost per equivalent unit for conversion.iii. The total cost depute to units transferred out of the Curing Department during November.iv. The cost assigned to work in process inventory as of November 30.Student AnswerHarmon Company i. The equivalent units of production for materials. = 38,000 (See math below) Transferred out= 30,000+ work in process 8,000= 38,000 ii. The cost per equivalent unit for conversion.= $7.50 (see math below) total weighted average units= 8,000 *.3= 24000 plus 30,000 that was transfer= 32,400 Conversion- 48,600 + added during month 194,400= 243,000 cost per unit 243,000/ total weighted avg unit 32,400 = $7.50 per unit iii. The total cost assigned to units transferred out of the Curing Department during November. = Materials= $142,500 (see math below) Conversion= $225,000 make sense cost= $367,500 Materials = work in process plus added during month ( 34,500+146,000) = 180500 transferred materials divide by total average unit= 30,000/38,000=.7894 180500*.7894=$142,500Materials Conversion= materials transferred times cost per equivalent unit 30,000*$7.50= 225,000 Add together for total cost= 225000+142500= 367500 iv. The cost assigned to work in process inventory as of November 30.= Materials $38,000 + conversion $18,000= Total cost $56,000 (See math below) Materials times ending work in process divide total materials= 34500+146000= 180500 180500* (8,000/38,000)= 38,000 Conversion ending work process inventory 8,000*.3=2,400 conversion cost conversion times per unit= 2,400*$7.50= $18,000 Total cost= 38,000+18,000= 56000Instructor ExplanationPoints Received15 of 15CommentsGreat job4. Question (TCO F) Honeysuckle Corporation has provided the following data for the month of JanuaryInventoriesBeginning resultRaw materials$40,000$23,000Work In process$9,000$13,000 undefiled goods$52,000$45,000Additional InformationRaw material purchases$68,000 select labor costs$90,000Manufacturing overhead cost incurred$44,000 corroborative materials included in manufacturing overhead costs incurred $8,000Manufacturing overhead cost applied to work in process$39,000Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.Student AnswerHoneysuckle Corporation Schedule of Cost of Goods Manufactured Month of January Direct Materials Raw Materials Inventory Begining $40,000 Add Purchases of raw materials $68,000 Raw Materials Available for use $108,000 Less Raw Materials Ending $(23,000) Raw Materials Used in Production $85,000 Direct Labor Cost $90,000 Manufacturing overhead Manufacturing overhead cost incurred $44,000 Indirect materials included in manufacture overhead costs incurred $8,000 Manufacturing overhead cost applied to work in process $39,000 Total Manufacturing Overhead $91,000 Total Manufacturing Cost $266,000 Add Work in Process Inventory, Beginning $9,000 Less Work Process Inventory end $(13,000) Cost of Goods Manufactured $528,000 Honeysuckle Cost of Goods Sold Month of January Finished Goods Inventory $45,000 Add Cost of Goods Manufactured $528,000 Goods Available for Sale $573,000 compute Finished Goods Inventory $45,000 Cost of Goods Sold $618,000